Mixed use projects dominate Abu Dhabi's construction landscape

Airport development and Road infrastructure projects are valued at AED 12.69 billion ($3.46 billion), representing 19% of the total value, according to a study commissioned by the Abu Dhabi National Exhibitions Company (ADNEC).

ADNEC, formerly the General Exhibitions Corporation (GEC), commissioned the study as part of the preparations for CONSTRUCT Abu Dhabi 2006 and the first ever ARABIAN PROPERTIES Exhibition and Conference, to be held in the UAE capital, 2-5 April 2006.

'The Abu Dhabi construction market is proving to be one of the most dynamic markets in the region and there are clear indications of continued growth. Record oil revenues as well as the property law unveiled in 2005 in Abu Dhabi will continue to fuel the massive scale of project development in the emirate,' said a spokesperson for ADNEC.

In keeping with Abu Dhabi's drive towards diversifying its primarily oil-based economy, construction of Industrial parks accounts for AED 2.8 billion ($763 million), Shopping centres are valued at AED 1.77 billion ($485 million), representing four and three percent of the total respectively.

In addition to the buildings counted in the mixed use category, an additional AED 1.14 billion ($312 million) and AED 429 million ($117 million) are being spent on Commercial buildings and Residential buildings respectively. Construction of Health care facilities in Abu Dhabi account for AED 367 million ($100 million).

Other significant categories listed in the study are Hotels (valued at AED 880 million or $240 million), Government offices (AED 165 million or $45 million) and Sports infrastructure (AED 106 million or $29 million).

Elaborating on the aggressive growth of the construction industry in Abu Dhabi, the spokesperson from ADNEC said: 'From AED 8.6 billion ($2.34 billion) in 2005, the value of new construction projects in Abu Dhabi is expected to rise to AED 23.12 billion ($6.29 billion) in 2006, an increase of 173%. In line with this trend, 2007 will see new construction projects worth AED 24.59 billion ($6.70 billion) being tendered to contractors'.

'In the next 24 months, over AED 47 billion ($12.80 billion) worth of new construction projects in Abu Dhabi including commercial and residential buildings, roads, airport infrastructure, industrial parks and governmental institutions are expected to be tendered to contractors.'

The list of mega projects in the emirate are led by the Al Raha Beach Development (AED 53.94 billion or $14.69 billion), Shams Abu Dhabi project by Sorouh Real Estate (AED 25 billion or $6.81 billion), the Abu Dhabi Airport Expansion (AED 24.9 billion or $6.78 billion), the Mohammed Bin Zayed city, and the newly announced port and industrial zone at Taweelah.

ADNEC recently announced that the first-ever ARABIAN PROPERTIES exhibition will be held in parallel with CONSTRUCT Abu Dhabi 2006. ARABIAN PROPERTIES will focus on the burgeoning property development sector in the region. Together the two events will occupy an exhibit area of 20,000 square metres which represents an increase of more than 300 per cent in exhibit space over 2003. Over 8,000 trade visitors are expected to attend, with more than 250 exhibitors from 12 countries

'The twin events organised by ADNEC are an ideal platform for those who wish to target a share in the growing construction and property development pie in Abu Dhabi,' added the spokesperson.

The two events build on the success of the CONSTRUCT exhibitions in 2003 and 2005. Both exhibitor and visitor numbers experienced a quantum leap at CONSTRUCT 2005. The number of exhibitors increased by 70%, from 95 in 2003, to 165 in 2005, and the number of visitors jumped 140%, from 1,848 in 2003, to 4,655 in 2005. In 2005, the gross exhibit space increased to 6,500 square metres, from 4,000 square metres in 2003. The 2005 edition of CONSTRUCT also had 127 reporters from 44 media houses covering the event.

CONSTRUCT 2006 and ARABIAN PROPERTIES 2006 will be held at the Abu Dhabi International Exhibition & Conference Centre and will be supported by the Ministry of Public Works, Municipalities & Agriculture Department, Social Services & Commercial Building Department, and the UAE Contractor's Association.